CA AB1398

Requires all interested parties in workers' compensation cases to provide written disclosure of any financial interest to third-party payers or entities when presenting claims for payment for services furnished through a referral

Defines "interested parties" broadly to include injured employees, employers, insurers, claims administrators, attorneys, and medical service providers, along with their representatives and immediate family members

Prohibits interested parties (except claims administrators and network service providers) from referring persons for services to entities in which they have a financial interest, with violations constituting a misdemeanor

Establishes civil penalties of up to $15,000 per offense for violations, enforceable by the Insurance Commissioner, Attorney General, or district attorneys

Exempts certain arrangements from the financial interest prohibition, including commercially reasonable loans, fixed-rate equipment leases of one year or more, and securities purchased through public exchanges